Several parts of the Mediterranean basin are experiencing grid parity nowadays, which is a sign that Photovoltaic (PV) technology has become competitive to conventional energy sources and may continue to develop without support. The net-metering policy takes advantage of the grid parity situation and is considered a step away from fading Feed-in Tariff schemes. Nevertheless, several policy variations make the decision about a specific net-metering scheme a complicated task. Therefore, the aim of this paper that deals with residential PV systems is two-fold. The first aim is to present a methodology that identifies the appropriate general net-metering scheme given the particularities and local conditions. The second goal is to examine the parity situation and compose net-metering policy recommendations in 6 Mediterranean countries. The current net-metering policy in Cyprus, which sets a grid charge on PV prosumers, is used as a case study under 3 scenarios. The first simulates the current policy in Cyprus, the second simulates self-consumption and different partial-netting schemes, and the third a partial-netting scheme with variable netted network charges. The results reveal that partial-netting policies with shorter timeframes of rolling credits and higher grid charges offer advantages that can be utilized for effective net-metering policies. •A methodology to configure net-metering policies involving 3 parity assessments.•LCOE calculated for MED region with varying discount rate and initial investment.•Modified LCOE including the grid charge is evaluated.•MED countries exhibit considerably different parity results.•Grid charge and shorter rolling credits timeframes reduce cross-subsidization without compromising prosumer’s profits.